Wednesday, October 1, 2008

Ad crunch affecting all media

Local TV stations' advertising revenues in the second quarter this year dropped 6.1%, and entwork TV dropped 4.8%, according to a new report about how the economy and related decline in advertisinig buys is affecting media across the board.

''Newspapers have certainly been hit hardest,'' said Mike Simonton, a media analyst with Fitch Ratings. ``Then I'd say next worst is radio, followed by TV stations, Yellow Pages and then even outdoor advertising, which was strong for a long time but now is having problems like everyone else.''

The main damage to newspapers has been the move to the web of classified ads, but the overall market for print is substantial.

"Newspapers are not going to go out of business,'' said Edward Atorino, a media analyst with Benchmark. "Fifty million newspapers are still being sold daily. There's still $45 billion in ad revenue.''

Here's the entire story from the Miami Herald --